Here's my answer to the following questions:
- Structured Decisions
- Semi-Structured Decisions
- Un-Structured Decisions
Three types of decisions
There are three types of decisions made by different sections of the organization. Information systems are used to help with these decisions.
Structured Decisions:
~are those in which the decision maker must provide judgment, evaluation, and insights into the problem definition.~
means having processes in place to handle a situation. The implication is that structured problems are recurring ones. Because they recur, we put processes and procedures in place to handle them. These decisions are repetitive and routine. They involve definite procedures for answering. Therefore they don't need to be treated as new each time the decision has to be made. A good example of a structured decision would be the hiring process in a company. its important to create structure around repetitive situations so that a lot of time is not spent on very minor decisions.
Semistructured Decisions:
~by contrast, are repetitive and routine, and decision makers can follow a definite procedure for handling them to be efficient.~
these decisions have elements of both structured and semi structured decisions. Only part of the problem has a clear-cut answer provided by accepted procedure. A semi structured decision is one which is partially programmable but still requires human judgement. There are three dimensions to a semi structured decision:
Unstructured Decisions:
~are those in which only part of the problem has a clear-cut answer provided by an accepted procedure. In general, structured decisions are more prevalent at lower organizational levels, and unstructured decision making is more common at higher levels.~
These decisions require judgement, evaluation and insight to solve the problem. Unstructured means "decision processes that have not been encountered in quite the same form and for which no predetermined and explicit set of ordered responses exists in the organization". (Mintzberg, et al., 1976, 246) These decisions are seen as novel, important and non routine. There is no well understood procedure for making them. An example of an unstructured decision that management may face could be deciding if the company should enter into a new market or would it be more beneficial for them to stay in just their current market. Information systems help to make such decisions.
Decision making by levels
- Senior executives face many unstructured decision situations, such as establishing the firm's five or ten-year goals.
- Middle management faces more structured decision scenarios but their decisions may include unstructured components.
- Operational management and rank-and-file employees tend to make more structured decisions.
Decision making process
There are four different stages in decision making: intelligence, design, choice, and implementation.
- Intelligence: consists of discovering, and understanding the problems occurring in the organization - why a problem exists, where, and what effects it is having on the firm.
- Design: involves identifying and exploring various solutions to the problem.
- Choice: consists of choosing among solution alternatives.
- Implementation: involves making the chosen alternative work and continuing to monitor how well the solution is working.
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